The Following Is Addison Corporation's Contribution Format Income Statement for Last

The following is Addison Corporation's contribution format income statement for last month:

$\begin{array} { | l | r | } \hline \text { Sales } & \$ 1,000,000 \\\hline \text { Less: variable expenses } & \underline { 700,000 } \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less: fixed expenses } & \underline { 180,000 } \\\hline \text { Operating income } & \$ 120,000 \\\hline\end{array}$ The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

-How many units would the company have to sell to attain target operating profits of $150,000?

A) 22,000 units.
B) 37,500 units.
C) 25,000 units.
D) 26,667 units.

Correct Answer:

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